23rd January 2025 Pre-Market Analysis

Introduction

This report provides an overview of the recent market performance, key economic indicators, and notable stocks in both bullish and bearish situations as of January 23rd, 2025.

Key Points

1. Market News

• GIFT Nifty indicates a flat/negative start. Gains in IT companies bolstered indices in previous trading.
• US markets closed higher due to positive Netflix earnings and optimism over AI investment plans.
• Asian markets opened mixed, with the US 10-Year Treasury yield falling to 4.60%.
• Crude oil prices dropped; US stockpiles increased. Gold remains stable near October highs.

2. Technical Analysis

• • Nifty-50:

    • Created a small bullish candlestick with a long lower shadow.
    • Remains below key moving averages.
    • Support Levels: 23,174 | 23,218 | 23,290
    • Resistance Levels: 23,030 | 22,986 | 22,914

    Nifty Bank:

    • Formed a Dragonfly Doji pattern (possible trend reversal).
    • Below key moving averages.
    • Support Levels: 48,797 | 48,964 | 49,234

3. Key Stocks to Watch

Bullish:

1. BPCL: Q3 profit up 94% QoQ.
2. Bharti Airtel: Moody’s outlook revised to positive.
3. Paras Defence: ₹12,000 crore Optics Park project announced.
4. Zydus Lifesciences: FDA orphan drug designation for ALS treatment.

Bearish:

1. Laurus Labs: FDA Form 483 observation.
2. Sanofi India: ₹26.50 crore tax liability due to disallowed transactions.

4. Sector-Wise Analysis

1. Top Sectors (+ve performance last week):

   • Nifty Metal (+2.45%)
   • Nifty Commodities (+2.21%)
   • Nifty CPSE (+2.07%)
   • Nifty 100 Liquid 15 (+2.02%)
   • Nifty High Beta 50 (+2.02%)

   Volume Shockers (Stocks with session volume >1.5x average):

   • ICICI Prudential (CMP: ₹598)
   • Samvardhana Motherson (CMP: ₹142)
   • REC (CMP: ₹462)
   • DLF (CMP: ₹713)
   • Info Edge (CMP: ₹7,234)

5. Stock Analysis

Long Build-Up Stocks

• Top Stocks (OI % Change):
  • INDIAMART (+56.80%)
  • POLYCAB (+46.70%)
  • ICICIPRULI (+33.10%)
  • PNB (+27.80%)
  • POLICYBZR (+26.90%)

Short Build-Up Stocks

• Top Stocks (OI % Change):
  • KEI (+47.00%)
  • DALBHARAT (+38.00%)
  • MCX (+8.20%)
  • JIOFIN (+7.40%)
  • ZOMATO (+6.00%)

6. FIIs and DIIs Activity (22nd January 2025)

• • Foreign Institutional Investors (FIIs):
    • Net Sellers: ₹4,026.25 crore in the cash segment.
  • Domestic Institutional Investors (DIIs):
    • Net Buyers: ₹3,640.22 crore in the cash segment.

Conclusion

The market is set for a cautious start with mixed signals from international markets and local economic indicators. Investors should continue to monitor key stocks and market indices for potential movements in both bullish and bearish directions, keeping an eye on upcoming economic data and geopolitical events.